By Trade OU, Export Control Violation, Connecticut 2022
A federal court in Connecticut has ordered the forfeiture of approximately $826,000 in funds used in the attempted smuggling of a dual-use export-controlled item to Russia in violation of United States export laws and regulations.
According to court documents, beginning in 2018, operators of a Latvia-based corporation conspired with the operator of By Trade OU, an Estonia-based company, as well as individuals in Russia and a Russia-based company, to violate U.S. export laws and regulations and smuggle a jig grinder that was manufactured in Connecticut to Russia.
A jig grinder is a high-precision grinding machine system that does not require a license to export to European Union countries but does require a license for export and reexport to Russia because of its potential application in nuclear proliferation and defense programs.
U.S. authorities, working with Latvian authorities, intercepted the jig grinder in Riga, Latvia, before it was to be shipped to Russia.
By Trade OU pleaded guilty to one count of conspiracy to violate the Export Control Reform Act, and one count of international money laundering conspiracy on December 1, 2022.
The investigation is being conducted by Homeland Security Investigations Field Offices in New Haven, Connecticut; Portland Oregon; and the Hague, Netherlands; the U.S. Department of Commerce's Office of Export Enforcement in Boston; and the FBI. The Prosecutor-General's Office of the Republic of Latvia, the Prosecutor General's Office of the Republic of Estonia, Latvian Tax and Customs Police, Estonian Tax and Customs Board and the Latvian State Police are assisting the investigation.
Assistant U.S. Attorneys Rahul Kale, Konstantin Lantsman and David Nelson for the District of Connecticut and Trial Attorney Matthew Anzaldi of the National Security Division's Counterintelligence and Export Control Section are prosecuting the case. The Justice Department's Office of International Affairs provided valuable assistance.
Key Facts
- State: Federal
- Category: Fraud & Financial Crimes
- Source: DOJ Press Release â†â€â€
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